Hexatronic Group AB (HTRO) AI Stock Analysis

• Market Cap: kr5.43B
• Dividend Yield: N/A
• Average Volume (3M): 1.17M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.24
• Revenue Growth: 0.01%
• EPS Growth: -71.63%
• Country: SE
• Employees: 1,997
• Sector: Technology
• Sector Strength: 88
• Industry: Communication Equipment
• EPS (TTM): -0.27
• Shares Outstanding: 205,637,220
• 10 Day Avg. Volume: 1,116,583
• 30 Day Avg. Volume: 1,166,324
• PEG Ratio: 3.25
• Price to Book (P/B): 1.38
• Price to Sales (P/S): 0.61
• P/FCF Ratio: 9.72
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 1.98
• Revenue Forecast (FY): kr7.81B

• Rating: 50 Neutral
• Price Target: kr27.00 ▲(14.60% Upside)
• Action: Reiterated Date: 02/07/26
• Date: Action: Reiterated 02/07/26

The score is held down primarily by the sharp 2025 profitability deterioration (margin collapse and net loss), despite supportive positives from continued positive operating/free cash flow and manageable leverage. Technicals are constructive with a strong uptrend, but near-overbought readings add short-term risk. Valuation is a headwind because the negative P/E reflects loss-making performance and provides limited comparability.

Positive Factors

Strong cash generation

Hexatronic delivered positive operating and free cash flow even in a loss year, showing durable cash-generation capacity. That FCF provides funding for capex, working capital and debt service, offering a structural cushion while management repairs margins.

Manageable leverage

Leverage under 1.0 and improvement versus prior years indicate a not-overstretched capital structure. This level of debt gives the company financial flexibility to support network product production and invest commercially while navigating cyclical telecom capex cycles.

Secular fiber-market position

Hexatronic's broad product portfolio and systems focus positions it to benefit from ongoing structural FTTH and broadband rollouts. Serving telecom operators, utilities and contractors supports recurring B2B demand and scale advantages across geographies over the medium term.

Negative Factors

Margin collapse and net loss

A dramatic fall in gross margin and an earnings reversal are structural concerns: they suggest pricing pressure, cost or mix shocks that impair intrinsic profitability. Unless margins recover, long-term return on invested capital and reinvestment capacity will be materially weakened.

Equity decline and negative ROE

Declining equity and a negative ROE reduce the firm's ability to absorb future losses and constrain capital allocation. This deterioration undermines shareholder capital durability and could force conservative investment, capital raises, or slower growth if profitability does not improve.

Weaker cash-flow-to-debt coverage

Although FCF is positive, the fall in cash-flow-to-debt reduces financial headroom and raises refinancing risk. Persistently lower coverage would limit capacity to fund growth or service debt without issuing new capital, especially if margins remain impaired.

Hexatronic Group AB Business Overview & Revenue Model

Company Description

Hexatronic Group AB (publ), together with its subsidiaries, designs, develops, manufactures, markets, and sells fiber communication solutions in Sweden and internationally. The company supplies passive infrastructure for telecom companies; and provides components and system solutions. It also offers fiber optic cables, ducts, copper cables, and network accessories; high tech products for fiber optic communications; fiber optic solutions, such as prefabricated ODFs, multi-fiber cable assemblies, and industrial applications; and training services for telecommunications, electric/gas, and health/safety markets. In addition, the company provides high-density polyethylene pipes for communication, power, fiber-to-the-home, ITS, CATV, geothermal, and industrial pressure pipe applications; develops and certificates programs for various industries; and apprenticeships and specialist training programs, as well as distributes fiber-optic connection and optical measurement technology. It serves wholesalers, telecom operators, network owners, telecom companies, installers, and system houses. Hexatronic Group AB (publ) was incorporated in 1972 and is headquartered in Gothenburg, Sweden.

How the Company Makes Money

Hexatronic Group AB generates revenue primarily through the sale of its fiber optic products and systems to telecommunications operators, network builders, and service providers. Key revenue streams include the manufacturing and distribution of fiber cables, as well as connectivity products such as splices, connectors, and enclosures. The company benefits from long-term contracts with major telecommunications providers and engages in partnerships to develop tailored solutions for specific customer needs. Additionally, Hexatronic's expansion into international markets and the consistent demand for high-speed internet infrastructure contribute significantly to its earnings, as the global shift towards digital communication amplifies the need for robust fiber optic networks.

Hexatronic Group AB Financial Statement Overview

Summary

Overall financials weakened materially in 2025: revenue grew modestly but margins collapsed and the company swung to a net loss (income statement score 38). The balance sheet remains reasonably leveraged (debt-to-equity ~0.88; balance sheet score 56), and cash flow stayed positive with solid operating and free cash flow (cash flow score 60), partially cushioning the earnings deterioration.

Income Statement

The company shows a clear profitability deterioration in the latest annual period (2025): revenue grew modestly (+2.27%) but swung to a small net loss, with a sharp drop in gross margin (to ~5.9% from ~41.8% in 2024) and weaker operating profitability. This is a major negative inflection versus 2022–2024, when margins were healthy and earnings were solid (notably 2023). The main strength is that revenue has not collapsed and long-term growth from 2020–2023 was strong, but the margin compression and earnings reversal in 2025 materially weaken income statement quality.

Balance Sheet

Leverage looks manageable overall, with debt-to-equity below 1.0 in the latest year (~0.88), improved from higher leverage periods (above 1.0 in 2021 and 2023). However, equity declined in 2025 versus 2024 and return on equity turned slightly negative in 2025, reflecting the earnings downturn. Assets remain sizable and the capital structure is not overly stretched, but the recent profitability weakness increases balance-sheet risk if it persists.

Cash Flow

Cash generation remains a relative bright spot: 2025 produced solid operating cash flow (~585M) and free cash flow (~487M) with strong free cash flow growth (+33.06%). That said, operating cash flow covered only a modest portion of debt (~0.35 in 2025, down from ~0.62 in 2024), and free cash flow was lower than 2024 despite the positive growth rate shown. The key strength is continued positive free cash flow even in a loss year; the key weakness is reduced cash-flow-to-debt comfort versus the prior year.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	7.79B	7.58B	8.15B	6.57B	3.49B
Gross Profit	459.00M	3.17B	3.50B	2.87B	1.53B
EBITDA	766.00M	1.10B	1.62B	1.26B	483.40M
Net Income	-14.00M	346.00M	848.00M	795.00M	253.10M
Balance Sheet
Total Assets	8.06B	8.96B	8.73B	7.39B	4.72B
Cash, Cash Equivalents and Short-Term Investments	661.00M	633.00M	813.00M	552.00M	675.10M
Total Debt	3.02B	3.07B	3.49B	2.35B	1.92B
Total Liabilities	4.59B	4.91B	5.30B	4.58B	3.07B
Stockholders Equity	3.44B	4.02B	3.40B	2.77B	1.64B
Cash Flow
Free Cash Flow	487.00M	596.00M	426.00M	190.50M	-97.60M
Operating Cash Flow	585.00M	921.00M	944.00M	669.50M	104.70M
Investing Cash Flow	-272.00M	-508.00M	-1.43B	-1.10B	-1.15B
Financing Cash Flow	-199.00M	-613.00M	770.00M	270.60M	1.51B

Hexatronic Group AB Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 23.56
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE:HTRO, the sentiment is Positive. The current price of 23.56 is below the 20-day moving average (MA) of 26.36, below the 50-day MA of 24.13, and above the 200-day MA of 22.39, indicating a bullish trend. The MACD of 0.87 indicates Positive momentum. The RSI at 63.43 is Neutral, neither overbought nor oversold. The STOCH value of 49.47 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SE:HTRO.

Hexatronic Group AB Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
WAYS	60 Neutral	kr317.14M	30.66	―	―	10.55%	―
ALCA	57 Neutral	kr610.32M	-55.58	―	―	-7.91%	-33.91%
HTRO	50 Neutral	kr5.43B	-420.29	3.38%	―	0.01%	-71.63%
MAVEN	44 Neutral	kr215.28M	-14.40	-5.81%	―	-9.79%	-144.24%
INCOAX	44 Neutral	kr71.93M	-2.18	-24.59%	―	-48.24%	-48.99%

Hexatronic Group AB Corporate Events

Hexatronic Lifts Data Center Growth but Margins Hit by Restructuring Costs

Hexatronic reported a solid but margin-pressured fourth quarter of 2025, with net sales edging up 1 percent to SEK 1,848 million on strong 10 percent organic growth, particularly a 59 percent surge in Data Center sales, while adjusted EBITA margin declined to 7.2 percent due mainly to non-recurring restructuring costs and currency headwinds. The company expanded its performance improvement program within Fiber Solutions, including its Clinton, South Carolina factory, booked SEK 96 million in one-time charges tied to European operations and the US plant, and raised expected annual EBITA run-rate savings to SEK 120 million by the end of Q1 2026, while maintaining adjusted leverage at 1.9x, improving operating cash flow, streamlining its Fiber Solutions regional structure, and acquiring US-based Communication Zone to bolster its North American footprint.

The most recent analyst rating on (SE:HTRO) stock is a Buy with a SEK26.00 price target. To see the full list of analyst forecasts on Hexatronic Group AB stock, see the SE:HTRO Stock Forecast page.

Hexatronic to Present Q4 and Full-Year 2025 Results on 5 February

Hexatronic Group AB will publish its fourth-quarter and full-year 2025 results on 5 February 2026 at 07:00 CEST, followed by a webcast presentation later that morning with the CEO, CFO and Deputy CEO, during which investors and analysts can submit written questions. A parallel teleconference with Q&A will also be available via pre-registration, and both the webcast and accompanying presentation materials will be accessible on the company’s website, underscoring Hexatronic’s ongoing efforts to maintain transparent communication with the capital markets around its performance and outlook in the fiber connectivity sector.

The most recent analyst rating on (SE:HTRO) stock is a Hold with a SEK26.00 price target. To see the full list of analyst forecasts on Hexatronic Group AB stock, see the SE:HTRO Stock Forecast page.

Hexatronic Expands US Presence with Acquisition of Communication Zone

Hexatronic Group AB has acquired Communication Zone Inc., a leading data installation and service provider based in Chicago, to expand its data center service offerings in the US Midwest. This acquisition enhances Hexatronic’s market position by integrating Communication Zone’s strong customer base and service capabilities, aligning with Hexatronic’s strategy to grow its Data Center business and achieve its 2028 financial targets.

The most recent analyst rating on (SE:HTRO) stock is a Hold with a SEK18.00 price target. To see the full list of analyst forecasts on Hexatronic Group AB stock, see the SE:HTRO Stock Forecast page.